Chicago Condo Glut Just Getting Worse

This week’s Crain’s ran a story on the continuing demise of the downtown condo market. According to data from Appraisal Research Counselors sales of new downtown homes (i.e. condos) sank “73% to a record-low 685 units during the first six months of this year” compared with the first half of 2007. Here is the data:

Plummeting Chicago condo sales

And of these 685 units more than half were from the Chicago Spire. Given that construction cranes continue to fill the skyline and existing units continue to be foreclosed it’s a mystery how they are going to ever sell all these new units.

One would think that a) this is good news for affordability and b) this will eventually depress prices in the areas of the city that have thus far been immune from the price declines – e.g. Lakeview and Lincoln Park.

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